Cooperation is a type of social movement in which a certain organizational and economic system of people’s activity is formed.
The essence of cooperation
As a special form of labor organization,
cooperation is represented by cooperation of a different number of people who jointly participate in one and in different interconnected labor processes. All these processes occur within the framework of some organizational and economic systems.
Types of cooperation
Considering this concept in the understanding indicated above, the following forms of cooperation are distinguished: simple and complex.
So, simple cooperation is formed in the process of performing uniform work. For example, this is joint land cultivation, trade or construction.
Complicated cooperation is based on a clear division of labor of persons engaged in joint work. With such an organization of work, the means of production can be used more efficiently, as well as the knowledge, labor, and qualifications of those employed in such joint work.
Other forms of bringing people together
From the position of relations arising from the merger of property, labor cooperation allows you to unite participants based on a collective-shared form, which is created through the formation and subsequent reproduction of capital on a unit basis.
This association is based on voluntariness, democracy, equality, mutual economic interest and responsibility for the results of joint activities to meet the needs of each individual team member. This happens by increasing revenue and lowering some costs.
Collective-shared cooperation of labor has the main features that are determined by the very subject of management and find their expression in the principles of its organization. These include: formation on a democratic basis, organization and effective management on the basis of equality of members of the cooperative.
Production cooperation - the establishment of long-term relationships between individual industries, business entities, as well as their units in order to participate in the manufacture or repair of specific products. With this combination, enterprises can supply the parent company (consumer) with finished products or semi-finished products (stampings or blanks) that are necessary for him to produce the final product.
Production cooperation is the activity of business entities in two main areas:
- Establishment of a close relationship both between industries and between enterprises that are directly dependent on the technological process;
- Organization of relations between specialized enterprises for the full use of all production capacities.
Cooperation in production: basic forms
The following forms of industrial cooperation are distinguished:
(subject), in which business entities performing related work supply the main enterprise with some items (units) that are necessary to complete an already finished product (for example, electrical equipment or engines for tractors or cars);
- detail , represented by the supply of related parts (these may be piston rings for automobile or tractor enterprises);
- technological , in which specialized enterprises deliver to others some semi-finished products (for example, stamps) or certain technological operations are performed for them.
Classification by geographic location
Depending on the territorial location, cooperation is:
- intra-district (association of enterprises located in one economic zone);
- inter-district (with the location of business entities in various economic zones).
Considering industry affiliation, the following forms of enterprises are distinguished: intra-industry and inter-industry cooperatives. So, when cooperating with business entities working in the same industry, we get intra-industry associations. For example, the sugar industry. If, however, business entities from several sectors participate in cooperation, then intersectoral cooperation
is used (for example, a
pasta factory, electronic or machine-building industry).
Cooperation and specialization
Concepts such as specialization and cooperation are closely interconnected. It is also possible to assert with confidence that cooperation in its economic essence is a derivative of specialization. So, the second term leads to the formation of a list of highly specialized industries and enterprises within the framework of the law on the division of labor. Business entities with a narrow specialization produce only individual items, assemblies, parts. And the creation of a finished product often requires certain relationships with the unification of efforts that will allow it to be assembled into a whole.
Thus, cooperation is the next stage of business management, based on developed specialization, which contributes to the rational use of raw materials, materials and labor resources.
Indicators of cooperation
In industry such production indicators are known:
- The proportion of cooperated deliveries in the cost of manufactured products, represented by the ratio of these indicators and expressed as a percentage.
- The number of enterprises cooperating with each other . In this case, the effectiveness of such associations is quite clearly traced. So, often the forms of enterprises involve the manufacture of only one type of product, which is much more profitable for a large enterprise to purchase than to set up its own production for the production of one or another spare part. So, for example, various tools or hardware in cooperative deliveries are much cheaper than their manufacture at each individual enterprise. In this case, production relations arise. This is the interaction of individual business entities for the production of specific parts (specialized production).
This article examined the combination of enterprises within one state. However, there is international cooperation. We give a clear example.
On the territory of one state there is an enterprise that produces a suspension for drugs against cancer (chemical industry). However, at this plant, there is no closed cycle of such production due to a lack of funds for the purchase of special equipment. Therefore, the suspension obtained is sent to another state (in our case, to the UK), where the corresponding production facilities are available, on which the medicine itself is ready, ready for use.
The industries where such a business combination is absent include the food industry.
This is due to a fairly simple process of manufacturing finished products. However, there are exceptions. For example, the manufacture of wine, champagne, cognac and pasta. However, on an industrial scale, this is not of particular economic importance. Therefore, in the food industry, it is enough to establish simple relationships between independent enterprises.
To some extent, cooperation in the food industry is manifested in the joint use of some auxiliary production facilities, as well as serving farms with full load throughout the entire period of operation. The economic feasibility and effect of this form of cooperation is somewhat softened due to the seasonal nature of individual industries.
So, in the off-season, when the main production is idle, the available technological capacities and areas can be leased to other nearby enterprises. For example, repair shops, electrical installations or warehouses. And in the season, the service sector and auxiliary production can be much more rationally used due to such leasing. For example, it is much cheaper to buy steam or electricity from a food company nearby to a sugar beet factory than to produce it by yourself. Such centralization of the service economy and auxiliary production receives a peculiar concentration effect and certain advantages of this production.
Summing up the material presented, it should be noted that cooperation is a fairly effective form of business combination in order to increase productivity and reduce the cost of finished products.